Yesterday GE Capital pulled out of the gun shop financing business. They sent letters earlier this year notifying them of their intentions. Their reasoning is due to the rigorous audit process brought down by the new legislation from the tragic events over the last several months. They initially halted financing back in 2008 and eventually completely pulled out from providing funding yesterday. Wells Fargo halted gun shop financing about ten years ago. Bank of America had no comments regarding their position.
Where does this leave gun shop owners who need financing? Who will they turn to for funding expansion projects or buying inventory? Gun shop financing will now fall on the alternative small business lenders throughout the country. Small business lenders who consistently pick up the “slack” for retailers throughout the country by offering merchant cash advances now have another sector of business they can pursue. They have been providing these loans for over 15 years and have pioneered underwriting processes that banks cannot keep up with or choose not to adopt. Those alternative lenders will provide the much needed gun shop financing going forward. This isn’t a political issue rather an issue of providing a necessary business function – financing. Merchant cash advance providers and alternative unsecured small business funding sources fill a void that permits the ongoing revenue generating machines that we call “small business.” Why should a particular industry be excluded because of what product or service they provide? This country was founded on the right express oneself and the freedom to operate democratically within the guidelines of our laws. Gun shops are selling a product which although controversial is still legal to sell. They do have a responsibility to operate in a manner that is compliant and not push the boundaries of the law…just like any other business in any other industry. Gun shop financing is a service that merchant cash advance providers or small business funding sources will provide today and in the future. Teaming up with one of these alternative lenders is a good move for gun shops going forward who want fast approvals, fast funding, and little hassle. This is what small business funders provide daily throughout the country for all industries.